Today's Economic Data - PPI, Industrial Production And Homebuilder Sentiment And Two POMOs

Here are today's economic highlights, for anyone who cares and is deluded to think that any economic numbers actually still matter and drive the market and not vice versa.

8:30: Producer Price Index (December): Moderate core. We forecast that the PPI increased by 0.3% (month-over-month) in December, helped by higher energy prices. However, we expect that the core PPI again increased by just 0.1%.

9:00: TICS net inflows (November). Foreign inflows into long-term US securities slowed in October on a drop in net purchases of US Treasury securities. Foreign investors also stepped up their net sales of corporate bonds during the month. In light of the improved performance of Treasuries in late October, these inflows likely recovered in the November report.

Consensus: +$40bn; last +$5bn.

9:15: Industrial production (December): Rebound. We forecast a solid 0.6% (month-over-month) increase in industrial production for December. Several factors point to a rebound following a decline of 0.2% in November. First, manufacturing surveys, such as the ISM report, picked up in December. Second, manufacturing employment and average weekly hours increased, suggesting production may have gained as well. Third, weekly production data show a sharp increase in US car and truck assemblies during the month.

10:00: Housing Market Index (January): Another increase? Consensus forecasts expect another increase in the NAHB homebuilder sentiment index this month. The post-crisis high for this indicator is 22 (reached in May 2010). A reading above this level would be a fairly encouraging sign about the housing market recovery.

So what have we learned. Only terrible outlooks and negative numbers matter. All positive indicators and numbers must be immediately discarded and devalued. Negative numbers are always the truth sign of reality and positive numbers are always manufactured by political trolls

Wrong. What we've learned is that negative numbers aren't even as bad as they really are. We've learned that the free market is now just a propped up POS. We've learned that, absent intervention, we would actually have to address and correct our problems. We've learned that it's still a 100% rigged game for the elite.

But, hey, if you enjoy riding around on your unicorn in ingnorant bliss....go for it. I'm in agreement with you that it's more pleasant than accepting reality.